negotiations after two hours and said enough is enough. with all that said we bring in our nbc political analyst, dr. larry gersten. in terms of layman's purposes what's happening, everything in washington what is the effect in california. >> we are flirting with disaster. like to put it another way. disaster looming close. just next month in august, the united states government is set to make 80 million payments to citizens, governments. companies. social security, medicare, those are the big ones, food stamp recipients, federal workers, military personnel, contractors, list goes on and on. without raising that ceiling, the government is going to be short. in august, alone, the government is going to be short $192 billion. that is for california, california could lose $24 billion of that amount. in federal funding. a lot of dough. >> larry, how much of this is real hedging on their part.